Akimat of East-Kazakhstan oblast declared invalid floatation of its bonds of the second and the third issues

/KASE, July 25, .02/ - Kazakhstan stock exchange (KASE) informs that floatation of inscribed indexed coupon bonds of East-Kazakhstan oblast (EKO) of the second and the third issues, which were conducted in KASE trade system on July 24, 2002 has been declared by the issuer invalid. The bonds were floated by the issuer at face value. The subject of the trade was fixed coupon interest rate, which will be paid by the issuer twice a year in accordance with time basis actual/365 A total of 8 demands were submitted to the specialized trades on floatation of bonds of the second issue from 4 KASE members in the total amount of KZT820,871,000.00 with announced floatation volume of KZT390.0m (KZF2KY030021, VKU036.002; KZT15,370; KZT700.0m; July 26, 02 - July 24, 05). Demand exceeded supply 2.10 times as much. Value of the rate varied in the submitted bids from 8.60% to 9.30%APR and in the weighted average expression on the whole demand equaled to 9.0037%APR. Out of the whole volume of demand 93.42% in volume terms fall to the share of Kazakhstan commercial banks, 6.18% - to the share of their corporate clients, 0.40% - to the share of broker-dealer firms. Investors of other categories did not take part in the floatation. A total of 4 demands were submitted to the specialized trades on bonds floatation of the third issue from 2 KASE members in the total amount of KZT613,300,000.00 with announced floatation volume of KZT310.0m (KZF2KY070035, VKU084.003; KZT15,370; KZT2,000.0m; July 26, 02 - July 23, 09). demand exceeded supply 1.98 times as much. Value of the rate varied in the submitted bids from 9.00% to 9.80%APR and in the weighted average expression on the whole demand equaled to 9.6452%APR. Out of the whole volume of demand 99.46% in volume terms fall to the share of Kazakhstan commercial banks, 0.54% - to the share of broker-dealer firms. Investors of other categories did not take part in the floatation. After analyzing of the registers of the submitted demands presented to the issuer Akimat of East-Kazakhstan oblast declared floatation of its bonds invalid because of unsatisfactory price conditions, which were announced by the participants of the specialized trades and their clients. We are reminding that subjects of pension market of Kazakhstan did not take part in the trades because permission from the National Bank of Kazakhstan for purchasing of EKO bonds of the floated issues at the expense of assets of accumulative pension funds has not been received yet. [2002-07-25]